The Ministry of Commerce of China File photo: VCG

　　China"s Ministry of Commerce (MOFCOM) on Friday expressed serious concern over the European Union"s newly proposed Industrial Accelerator Act (IAA), saying certain restrictive provisions could constitute significant investment barriers and institutional discrimination, and vowing to firmly safeguard the legitimate rights and interests of Chinese companies.

　　The comments came in response to a media inquiry about the EU"s release of the IAA on Wednesday, which introduces a series of restrictive requirements on foreign investment in four emerging strategic sectors, asking for MOFCOM"s comment on the matter.

　　China has taken note that the EU released the relevant bill on March 4, which sets out restrictive provisions for foreign investment in four sectors - batteries, electric vehicles, photovoltaics and critical raw materials - including requirements related to mandatory technology transfer, limits on foreign shareholding, local content rules and local employment, a MOFCOM spokesperson said in a statement.

　　The restrictions apply specifically to third-country investors whose global production capacity in the above sectors exceeds 40 percent, and the bill also explicitly proposes a "Made in the EU first" principle in public procurement, the spokesperson said.

　　"These practices constitute serious investment barriers and institutional discrimination, and are suspected of violating the most-favored-nation treatment principle," the spokesperson said, adding that the measures could further increase uncertainty for Chinese companies investing in the EU, and China expresses serious concern over the issue.